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Wednesday, May 03, 2006

More About The Price Of Oil

Instapundit has a few worthwhile links, inlcuding this Max Boot column that reveals who ultimately profits from rising oil prices:

Of the top 14 oil exporters, only one is a well-established liberal democracy — Norway. Two others have recently made a transition to democracy — Mexico and Nigeria. Iraq is trying to follow in their footsteps. That's it. Every other major oil exporter is a dictatorship — and the run-up in oil prices has been a tremendous boon to them.

My associate at the Council on Foreign Relations, Ian Cornwall, calculates that if oil averages $71 a barrel this year, 10 autocracies stand to make about $500 billion more than in 2003, when oil was at $27. This windfall helps to squelch liberal forces and entrench noxious dictators in such oil producers as Russia (which stands to make $115 billion more this year than in 2003) and Venezuela ($36 billion). Vladimir Putin and Hugo Chavez can buy off their publics with generous subsidies and ignore Western pressure while sabotaging democratic developments from Central America to Central Asia.

The "dictatorship dividend" also subsidizes Sudan's ethnic cleansing (it stands to earn $4.7 billion more this year than in 2003), Iran's development of nuclear weapons ($45 billion) and Saudi Arabia's proselytization for Wahhabi fundamentalism ($149 billion). Even in such close American allies as Kuwait ($35 billion) and the United Arab Emirates ($36 billion), odds are that some of the extra lucre will find its way into the pockets of terrorists.

We don't need higher energy taxes. We need more liberty in a whole bunch of countries. Including that corrupt banana republic on our southern border.